Third-party logistics provider, Wheels Group, Inc., just announced that they are being acquired by Radiant Logistics, Inc. Wheels is one of the largest logistics providers in Canada serving hundreds of small and large companies. Wheel’s operations are based in Toronto, Canada and they have warehouse and distribution centers located throughout Canada and the U.S. A major hub in the U.S. is located in Chicago. After the Radiant Logistics acquisition plan is approved by Canadian law, the new company will be referred to as RLGT.
Radiant Logistics has agreed to pay Wheels Group $0.77 per common share. The current debt of the company is expected to be refinanced, making the deal worth approximately CAD $95 million. Shareholders can choose a cash payout or shares in the new company. The transaction will take place during the first quarter of 2015, as long as there are no hold ups from Canadian government. Wheel’s board of directors are expected to unanimously approve the acquisition deal.
Founder and CEO of Radiant, Bohn Crain, said, “We are very excited to partners with the Wheels organization, which represents a service line and geographic expansion for both companies. We have been looking for a truck brokerage and intermodal platform to complement our forwarding operations for some time and we expect this transaction to be accretive to our earnings within the near term and accelerate our growth.”
President of Wheels operations in the U.S., Bohn Crain, will stay on as the CEO of the newly combined logistics organization. Peter James will be in charge of operations in Canada. Wheels and Radiant share common goals and combining the companies was a smart financial move. The best logistics services, warehouses, and people will be analyzed at each company to determine the best moves for the new organization.
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